KUALA LUMPUR: Former minister Khairy Jamaluddin today defended his calls for urgent reforms to be made to the government pension scheme involving future hirings.
In the latest episode of the 'Keluar Sekejap' podcast, the sacked Umno leader said the federal government would risk facing severe financial repercussions if no reforms were made to the pension scheme.
The government, he said, has spent around RM30 billion to pay for the civil servants' pension, which is almost 10 percent of the federal administration's expenditure this year.
The former Rembau member of Parliament also stressed that he was only calling for a new system to be implemented involving future hirings and not for the abolishment of the existing pension scheme involving current civil servants.
"If we always get triggered by these types of suggestions and we do not recognise it as a ticking time bomb that if we do not do anything, it will squeeze the space for the government to build more schools, hospitals, clinics and others, I think we are in a denial syndrome," he said.
Citing a findings made during the previous federal administration under the leadership of Bera MP Datuk Seri Ismail Sabri Yaakob, Khairy said expenses for retirement are expected to reach up to RM50 billion in 2030.
Khairy also proposed that there must be exceptions for certain types of civil servants that were crucial or still in need of the government's financial assistance to carry on with their lives during retirement.
"For lower grade civil servants, maybe the government can 'top up' for them so that they are able to take care of themselves after retiring.
" As for those who are critical civil servants, such as doctors, teachers, and nurses, maybe we can give a new scheme for them," he added.
Congress of Unions of Employees in the Public and Civil Services (Cuepacs) president Datuk Adnan Mat, had previously criticised talk of abolishing pension schemes for public servants, saying it should be considered a privilege for those who serve in the civil service.
He said that any proposal to eliminate or delay pension benefits for public servants in the country in the future should not be raised.
It should not be viewed as a burden on the government but rather as recognition for the contributions made throughout their service.
The response came after the former Rembau MP had agreed with the suggestion to abolish pensions for parliamentarians.
Previously, Muar MP Syed Saddiq Syed Abdul Rahman, also agreed with the proposal to abolish pensions for all ministers and parliament members and instead include them in the Employees' Provident Fund (EPF) contribution scheme.
